Weber observes the occupational statistics of any country of mixed religious that brings to a light a frequent situation that business leaders and owners of capital, as well as the higher grades of skilled labour, and even more the higher technically and commercially trained personnel of modern enterprises, are Protestant. He noted the post-Reformation shift of Europe's economic centre away from Catholic countries such as France, Spain and Italy, and toward Protestant countries such as the Netherlands, England, Scotland and Germany. Weber also noted that societies having more Protestants were those with a more highly developed capitalist economy. Similarly, in societies with different religions, most successful business leaders were Protestant. Weber thus argued that Roman Catholicism impeded the development of the capitalist economy in the West, as did other religions such as Confucianism and Buddhism elsewhere in the world. It appears that in religious affiliation, it has had a free hand to alter the social distribution of the population in accordance with its needs, and to determine its occupational structure. Based on Webers observations, he believed that the greater participation of Protestant in the ownership of capital, in management, and the upper ranks of labour in great modern industrial and commercial enterprise, in which as he stated, "religious affiliation is not a cause of the economic conditions, but to a certain extent appears to be a result of them (pg.228). A majority of the wealthy towns went over to Protestantism in the sixteenth century. Tradition has been a factor. Religious traditions, as of all traditional authorites. It has been claimed that "greater participation of Protestants in the positions of ownership and management in modern economic life may to-day be understood, in part at least, simply as a result of the greater material wealth they have inherited" (pg. 229), this explains why few Catholics are engaged in capitalistic enterprise. "Catholics show stronger propensity to remain in their crafts, that is they more often become master craftsmen, whereas the Protestants are attracted to a larger extent into the factories in order to fill the upper ranks of skilled labour and administrative positions," as stated (pg. 230). The mental and spiritual was acquired from the environment, the type of education favored by religious atmosphere of home community and the parental home, which have determine the choice of occupation and the professional career. "This the principal explanation of this difference must be sought in the permanent intrinsic character of their religious beliefs, and not only in their temporary external historic-political situations" (pg. 230). In his observations, he chooses to investigate these religions with a view to finding out what peculiarities they have or had that resulted in their behaviors. It appears that they value time and money. They invest their sum through the labors of their work to make good and large credit and make good use of it.
Weber offered an "ideal-type" methodology. His classification system was based on deduced constructs of rationally related potential means-end connections. These were not intended as reflections of actual social behaviors, but as abstract examples of possibilities against which the phenomena being studied could be assessed. Weber saw this process as essentially different from "generic conceptualization" which attempts, by means of empirical observation, to isolate key criteria and to group phenomena in terms of these. In his view, such generic concepts reflect the "essence" of the fixed, orderly and valueless reality of the physical world, and comprise the basic facts of natural science. He believed that social reality is so different in its ultimate "essence" that its concepts must be constructed quite differently. Weber insisted there was indeed a way in which ideal types could ascertain "correct" explanations. The subjectively intended meaning of an act could be uncovered by the method of "Verstehen". The essential meaning thus arrived at is what he meant by "Verstehen", or "explanatory understanding".
The Protestant ethic motivated the believers to work hard, be successful in business and reinvest their profits in further development rather than frivolous pleasures. The notion of calling meant that each individual had to take action in order to be saved; just being a member of the Church was not enough. Predestination also reduced antagonising over economic inequality and further, it meant that a material wealth could be taken as a sign of salvation in the afterlife. The believers thus justified pursuit of profit with religion, as instead of being fuelled by morally suspect greed or ambition, their actions were motivated by a highly moral and respected philosophy.
Iron cage is concept introduced by Max Weber, refers to the increased rationalization inherent in social life, particularly in Western capitalist societies. The "iron cage" thus traps individuals in systems based purely on teleological efficiency, rational calculation and control. In Weber's view, bureaucracies are cages in the sense that people are trapped in them, their basic humanity denied. Marx sees alienation as only a transitional stage on the road to man's true emancipation. Weber does not believe in the future leap from the realm of necessity into the world of freedom. He thought it more probable that the future would be an "iron cage" rather than a Garden of Eden.